Symantec Reports Strong Growth

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Continuing its dominating run in the security sector, Symantec reported strong quarterly results on Wednesday and upgraded its projections for the coming months.

The company posted revenue for Q1 2005 of $577 million, a 48 percent increase over the same quarter last year. Net income was $131 million, up from $59 million for the same quarter last year. Earnings per share more than doubled to 37 cents from 18 cents for the year-ago quarter.

Symantec chairman and CEO John Thompson says the strong quarter was largely due to the company's evolving enterprise business and continued robust growth on the consumer side.

"Our enterprise business continues to gain momentum as we enhance our offerings to protect customers from a broadening array of threats and the consumer business continues to perform above expectations," he says. "As security and network management continue to converge, we are well-positioned with a broad portfolio of products and services to address both consumer and enterprise customer needs."

Symantec's worldwide enterprise business represents 48 percent of total revenue and grew 24 percent for the quarter. Its enterprise-security business represented 35 percent of total enterprise revenue and grew 24 percent year-over-year; the enterprise administration business represented 11 percent of revenue and grew 27 percent; and the services business represented 2 percent of total revenue and grew 14 percent. The company's consumer business grew 79 percent and was 52 percent of total revenue.

The results have prompted the company to raise its guidelines for the fiscal second quarter ending Oct. 1, 2004. Symantec officials now project revenue to come in at $580 million, up $15 million over its last forecast. Non-GAAP earnings per share is estimated to be 37 cents, an increase of 3 cents from previous guidance.

Symantec also raised its fiscal 2005 expectations to $2.405 billion in overall revenue, an increase of $70 million, and non-GAAP earnings per share is now estimated at $1.57, up 11 cents from previous guidance.

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